- PW Partners Intends To Take Action To Close The Gap Between
BJRI Stock Price And Its Intrinsic Value.
JUPITER,
Fla., Feb. 20, 2024 /PRNewswire/ -- PW Partners,
LLC and its affiliates ("PW Partners") a value-oriented, activist
investor which is a shareholder of BJ's Restaurants Inc. (the
"Company", "BJ's"), (Nasdaq: BJRI) sent a letter to Gerald Deitchle, Chairman of BJ's, calling for
immediate actions to create long-term value for
shareholders.
Dear Mr. Deitchle:
PW Partners Capital Management, LLC ("PW Partners") is an
investment group that beneficially owns approximately 4.9% of the
outstanding shares of BJ's Restaurants, Inc (the "Company", "BJRI"
or "BJ's"), (Nasdaq: BJRI). We have been shareholders for
over a decade. Given the historical performance of BJRI's
stock price, PW Partners intends to take action to materially
improve the operations of BJRI, which we believe will close the gap
between BJRI's share price and its intrinsic value. PW
Partners believes BJRI's stock price is materially
undervalued.
We recommend the Board take the following actions:
- Reduce the current cost structure by $50
million by the end of the second quarter of 2024 with a
focus on G&A, Labor and Purchasing. PW Partners is ready,
willing and able to lead in the execution of this cost savings
plan;
- Execute a $100 million stock
buyback. Given the stock price, the quantum of share
repurchases in the fourth quarter of 2023 was disappointing.
The Company should be aggressively buying back its stock at
these prices. BJ's has the opportunity to purchase Company
assets at a material discount to their replacement value. PW
Partners believes replacement cost for the Company's assets
materially exceed the current share price. PW Partners
calculates the replacement cost of the Company's assets at
approximately $55 per share;
- Reduce the Board size to seven members, all of whom are focused
on shareholder value. The current Board size is excessive and
has not translated into shareholder value;
- Appoint our representatives to the Board. BJ's shareholders
deserve a Board that will act vigorously to maximize shareholder
value. We believe our initiatives must be implemented
immediately at this critical time in the Company's history.
Ten years ago, PW Partners engaged and joined the BJ's
Board because we felt there was a significant opportunity for
margin expansion. We were correct and the stock price
increased more than 80% over the following year as management
realized material cost efficiencies. We believe the margin
expansion opportunity is even greater today while the stock price
is much cheaper than it was in 2014.
CC: Stephen Fraidin
Cadwalader, Wickersham & Taft LLP
Sincerely,
Patrick Walsh
Chief Executive
Officer
PW Partners, LLC
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SOURCE PW Partners